ScoreWhy is Gem Diamonds Ltd. ?
1
With a fall in Net Sales of -40.71%, the company declared Very Negative results in Jun 25
- OPERATING CASH FLOW(Y) Lowest at GBP 45.09 MM
- INTEREST COVERAGE RATIO(Q) Lowest at 405.14
- ROCE(HY) Lowest at -8.98%
2
Risky -
- The stock is trading risky as compared to its average historical valuations
- Over the past year, while the stock has generated a return of -54.44%, its profits have fallen by -174.4%
3
Consistent Underperformance against the benchmark over the last 3 years
- Along with generating -54.44% returns in the last 1 year, the stock has also underperformed FTSE 100 in each of the last 3 annual periods
Real-Time Research ReportHow much should you sell?
- All quantity irrespective of whether you are making profits or losses
(If sector exposure > 30%, please use optimiser tool to see which are the best stocks to hold in Minerals & Mining)
When to re-enter? - We will constantly monitor the company and review our call based on new data
Is Gem Diamonds Ltd. for you?
High Risk, Low Return
Absolute
Risk Adjusted
Volatility
Gem Diamonds Ltd.
-100.0%
-0.95
100.37%
FTSE 100
13.98%
1.15
13.60%
Quality
Management Risk
Growth
Capital StructureQuality key factors
Factor
Value
Sales Growth (5y)
-5.88%
EBIT Growth (5y)
-171.49%
EBIT to Interest (avg)
6.77
Debt to EBITDA (avg)
0.12
Net Debt to Equity (avg)
0.07
Sales to Capital Employed (avg)
0.97
Tax Ratio
29.71%
Dividend Payout Ratio
0
Pledged Shares
0
Institutional Holding
0
ROCE (avg)
22.35%
ROE (avg)
11.64%
ValuationValuation Key Factors 
Factor
Value
P/E Ratio
NA (Loss Making)
Industry P/E
Price to Book Value
0.06
EV to EBIT
-11.63
EV to EBITDA
0.89
EV to Capital Employed
0.22
EV to Sales
0.29
PEG Ratio
NA
Dividend Yield
NA
ROCE (Latest)
-1.91%
ROE (Latest)
-3.26%
TechnicalsTechnical key factors
Indicator
Weekly
Monthly
MACD
Mildly Bullish
Mildly Bullish
RSI
Bullish
No Signal
Bollinger Bands
Mildly Bullish
Sideways
Moving Averages
Mildly Bearish (Daily)
KST
Bullish
Bearish
Dow Theory
No Trend
No Trend
OBV
Mildly Bullish
No Trend
Technical Indicator Scale: Bearish, Mildly Bearish, Sideways, Mildly Bullish, Bullish Turned 
Financial Trend0What is working for the Company
NO KEY POSITIVE TRIGGERS
-29What is not working for the Company
OPERATING CASH FLOW(Y)
Lowest at GBP 45.09 MM
INTEREST COVERAGE RATIO(Q)
Lowest at 405.14
ROCE(HY)
Lowest at -8.98%
INVENTORY TURNOVER RATIO(HY)
Lowest at 2.76 times
RAW MATERIAL COST(Y)
Grown by 107.53% (YoY
CASH AND EQV(HY)
Lowest at GBP 4.94 MM
DEBT-EQUITY RATIO
(HY)
Highest at 22.75 %
DEBTORS TURNOVER RATIO(HY)
Lowest at 20.55 times
NET SALES(Q)
Lowest at GBP 34.99 MM
OPERATING PROFIT(Q)
Lowest at GBP 8.4 MM
OPERATING PROFIT MARGIN(Q)
Lowest at 23.99 %
PRE-TAX PROFIT(Q)
Lowest at GBP -7.16 MM
NET PROFIT(Q)
Lowest at GBP -1.96 MM
EPS(Q)
Lowest at GBP -0.06
Here's what is not working for Gem Diamonds Ltd.
Net Sales
At GBP 34.99 MM has Fallen at -43.29%
Year on Year (YoY)MOJO Watch
Near term sales trend is extremely negative
Net Sales (GBP MM)
Interest Coverage Ratio
Lowest at 405.14 and Fallen
In each period in the last five periodsMOJO Watch
The company's ability to manage interest payments is deteriorating
Operating Profit to Interest
Pre-Tax Profit
At GBP -7.16 MM has Fallen at -191.22%
Year on Year (YoY)MOJO Watch
Near term Pre-Tax Profit trend is very negative
Pre-Tax Profit (GBP MM)
Net Profit
At GBP -1.96 MM has Fallen at -220.69%
Year on Year (YoY)MOJO Watch
Near term Net Profit trend is very negative
Net Profit (GBP MM)
Operating Cash Flow
Lowest at GBP 45.09 MM and Fallen
In each year in the last three yearsMOJO Watch
The company's cash revenues from business operations are falling
Operating Cash Flows (GBP MM)
Inventory Turnover Ratio
Lowest at 2.76 times and Fallen
In each half year in the last five Semi-Annual periodsMOJO Watch
Company's pace of selling inventory has slowed
Inventory Turnover Ratio
Net Sales
Lowest at GBP 34.99 MM
in the last five periodsMOJO Watch
Near term sales trend is negative
Net Sales (GBP MM)
Operating Profit
Lowest at GBP 8.4 MM
in the last five periodsMOJO Watch
Near term Operating Profit trend is negative
Operating Profit (GBP MM)
Operating Profit Margin
Lowest at 23.99 %
in the last five periodsMOJO Watch
Company's profit margin has deteriorated
Operating Profit to Sales
Pre-Tax Profit
Lowest at GBP -7.16 MM
in the last five periodsMOJO Watch
Near term Pre-Tax Profit trend is negative
Pre-Tax Profit (GBP MM)
Net Profit
Lowest at GBP -1.96 MM
in the last five periodsMOJO Watch
Near term Net Profit trend is negative
Net Profit (GBP MM)
EPS
Lowest at GBP -0.06
in the last five periodsMOJO Watch
Declining profitability; company has created lower earnings for shareholders
EPS (GBP)
Cash and Eqv
Lowest at GBP 4.94 MM
in the last six Semi-Annual periodsMOJO Watch
Short Term liquidity is deteriorating
Cash and Cash Equivalents
Debt-Equity Ratio
Highest at 22.75 %
in the last five Semi-Annual periodsMOJO Watch
The company is borrowing more to fund its operations; it's liquidity situation may be stressed
Debt-Equity Ratio
Debtors Turnover Ratio
Lowest at 20.55 times
in the last five Semi-Annual periodsMOJO Watch
Company's pace of selling Debtors has slowed
Debtors Turnover Ratio
Raw Material Cost
Grown by 107.53% (YoY)
MOJO Watch
The company's ability to pass on the cost of raw materials to customers has deteriorated; this may lead to a fall in profit margin
Raw Material Cost as a percentage of Sales
InfinHub Market Technologies FZ-LLC, Building-2, Unit 112, Dubai Internet City, Dubai, United Arab Emirates
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